President Trump’s War on ‘Information Silos’ Is Bad News for Your Personal Data

Dizzied by an accumulated pileup of busted norms, you might have missed a presidential executive order issued on March 20. It’s called, “Stopping Waste, Fraud, and Abuse by Eliminating Information Silos.” It basically gives the federal government the authority to consolidate all the unclassified materials from different government databases. Compared to eviscerating life-sustaining agencies in the name of fighting waste and fraud, it might seem like a relatively minor action. In any case, the order was overshadowed by Signalgate. But it’s worth a look.

At first glance, the order seems reasonable. Both noun and verb, the very word silo evokes waste. Isolating information in silos squanders the benefits of pooled data. When you silo knowledge, there’s a danger that decisions will be made with incomplete information. Sometimes expensive projects are needlessly duplicated, as teams are unaware that the same work is being done elsewhere in the enterprise. Business school lecturers feast on tales where corporate silos have led to disaster. If only the right hand knew what the left was doing!

More to the point, if you are going to eliminate waste, fraud, and abuse, there’s a clear benefit to smashing silos. For instance, what if a real estate company told lenders and insurers that a property was worth a certain amount, but reported what were “clearly…fraudulent valuations,” according to a New York Supreme Court judge. If investigative reporters and prosecutors could pry those figures out of the silos, they might expose such skulduggery, even if the perpetrator wound up escaping consequences.

But before we declare war on silos, hold on. When it comes to sensitive personal data, especially data that’s held by the government, silos serve a purpose. One obvious reason: privacy. Certain kinds of information, like medical files and tax returns, are justifiably regarded as sacrosanct—too private to merge with other records. The law provides special protections that limit who can access that information. But this order could force agencies to hand it over to any federal official the president chooses.

Then there’s the Big Brother argument—privacy experts are justifiably concerned that the government could consolidate all the information about someone in a detailed dossier, which would itself be a privacy violation. “A foundational premise of privacy protection for any level of government is that data can only be collected for a specific, lawful, identifiable purpose and then used only for that lawful purpose, not treated as essentially a piggy bank of data that the federal government can come back to whenever it wants,” says John Davisson, senior counsel at the Electronic Privacy Information Center.

There are practical reasons for silos as well. Fulfilling its mission to extract tax revenue from all sources subject to taxes, the IRS provides a payment option for incomes derived from, well, crookery. The information is siloed from other government sources like the Department of Justice, which might love to go on fishing expeditions to guess who is raking in bucks without revealing where the loot came from. Likewise, those not in the country legally commonly pay their taxes, funneling billions of dollars to the feds, even though many of those immigrants can’t access services or collect social security. If the silo were busted open, forget about collecting those taxes. Another example: the census. By law, that information is siloed, because if it were not, people would be reluctant to cooperate and the whole effort might be compromised. (While tax and medical data is considered confidential, the order encourages agency heads to reexamine information access regulations.)